William Companys accounts receivable reveal the following balances:

Age of Accounts Receivable Balance Percentage Estimated to Be Uncollectible

Current $720,000 0.5%

1-30 days past due 395,000 3.0%

31-60 days past due 105,000 16.0%

61-90 days past due 52,000 52.5%

91-120 days past due 13,000 92.0%

The credit balance in allowance for Bad Debts is now $42,000.

Required:

Prepare an aging schedule for the accounts receivable and give the journal entry for recording the necessary changes in the allowance for bad debts account.